On $19$ December $2024,$ the financial manager of Zukofurn, Ms Mabaso, who is a qualified Chartered

Accountant, was approached by Mr Gumede, a high$-$ranking politician within the Gauteng legislature.

Mr Gumede offered to secure a R$10$ million tender for Zukofurn to supply new office furniture for the

legislature. This is on condition that Zukofurn donates $10\%$ of the tender value to Mr Gumede$$s political

party. Ms Mabaso accepted the offer, as she is of the view that donating to political parties is not illegal

and the deal will be profitable for the company.

Taxation:

$$ Zukofurn made a profit before tax of R$3114500$ for the year ended $31$ December $2024.$ The deferred

tax liability on $31$ December $2023,$ correctly calculated, amounted to R$64500.$

$$ The South$-$African normal tax rate is $27\%.$ The capital gains tax inclusion rate is $80\%.$ You may

assume that both the tax rates have been effective and remained unchanged since $1$ January $2021.$

$$ Deferred tax is provided for on all temporary differences using the statement of financial position

approach. There are no items causing temporary or exempt differences except those identified in

the question. The company will have sufficient taxable income in future against which any unused

tax losses can be utilised.

$$ SARS recognizes the rent$-$to$-$own arrangement as a rental agreement in terms of part $($b$)$ of the

definition of an instalment credit agreement in the VAT Act, which means all rental receipts are

taxable when received

Briefly discuss, in terms of the SAICA Code of Professional Conduct, any ethical

concerns you may have regarding the conduct of Ms Mabaso in accepting the tender

proposal from Mr Gumede